Job cuts show greed of banks: Howlin
Tuesday, 22 March 2005 20:05
The Labour Party says the confirmation of redundancies at Bank of Ireland is further evidence of greed at senior level in major Irish banks.
The party's Enterprise, Trade and Employment Spokesperson, Brendan Howlin, says he questions the need for BoI to cut back at a time when it is generating consistent growth and profit.
Mr Howlin attributes the bank's success in recent years to the staff who he says are being thanked by management with a 10% cut in overall staff numbers.
According to the bank's proposals, which were released as part of a regular trading statement to the Irish Stock Exchange, voluntary or compulsory redundancies will be used to achieve 2,100 job cuts by 2009.
The Irish Bank Officials' Association has said that staff at the Bank of Ireland are extremely angry and furious at the proposals.
The IBOA's General Secretary, Larry Broderick, said that the plans would be strongly opposed.
He described the cost-cutting drive as corporate greed at its most vulgar.
Bank of Ireland's Chief Executive, Brian Goggin, has denied this, saying it was about building a better Bank of Ireland for both its staff and its customers.
Mr Goggin also said that compulsory redundancies could not be ruled out as part of the plans.
Speaking on RTÉ's Morning Ireland, he said that ten of the bank's 291 branches would close as a result of the cost-cutting programme.
Operations at the bank's 22 call centres in Ireland and the UK would also be merged into just four centres, he added.
Mr Goggin said that despite the bank being on target to deliver its 14th year of consecutive growth, it could not be complacent and the case for change was compelling.
Bank of Ireland has nearly 12,000 employees in Ireland and a further 6,000 in the UK.
The bank has been focusing on a cost-cutting programme since it delivered its half-year results last November.
Just before Christmas Mr Goggin outlined plans for an overhaul, making it clear that massive cost-cutting would be the hallmark of his tenure.
